OTP Review Checklist

Quick answer: This 15 point checklist walks you through what to verify on a Singapore Option to Purchase before you sign: buyer identity, property and tenure details, option and exercise fees, completion date, inclusions, encumbrances, financing and valuation clauses, and the 14 day stamp duty deadline. Miss these and you risk your option fee or worse.
15 items to verify before signing. Skip these and you can lose the option fee + worse.
Identity & Property
1. Buyer name + NRIC matches IPA exactlyMismatch = OTP void.
2. Property address + unit number correctVerify against caveat / title.
3. Tenure + remaining lease verifiedFor leasehold, must match URA records.
Money
4. Purchase price in figures AND wordsDiscrepancy = ambiguity = lawyer fight.
5. Option fee amount (typically 1%)Verify cheque / bank-transfer details.
6. Exercise fee (typically 4%, total deposit 5%)Or non-standard percentages clearly stated.
7. Completion date specifiedStandard 8-12 weeks for resale.
Conditions
8. Inclusions / exclusions listedWhite goods, light fixtures, curtains, A/C - what stays?
9. Vacant possession date confirmedIf currently tenanted, when does tenant vacate?
10. Existing defects acknowledged or excluded"As-is" vs "warranted free of defects".
11. Outstanding encumbrances disclosedMortgages, caveats, MCST disputes.
Risks & Outs
12. Subject-to-financing clause if neededCritical if IPA not 100% locked.
13. Subject-to-valuation clause consideredIf bank valuation comes in lower than purchase, you have an out.
14. Withdrawal terms - option fee forfeit conditionsStandard: forfeit if you don't exercise. Verify no other deductions.
Compliance
15. Stamping deadline within 14 daysBSD + ABSD payment to IRAS within 14 days of OTP signing or attract penalty.
Want me to review your OTP? WA me →

The information and insights provided on this page are for informational purposes only and are based on Winfred's independent research and views. While we strive to ensure accuracy and reliability, we do not guarantee the completeness, correctness, or timeliness of the data presented. Real estate investments are subject to various risks, including but not limited to market fluctuations, changes in economic conditions, interest rate volatility, regulatory shifts, liquidity constraints, and unforeseen property-specific risks. Past performance is not indicative of future results, and investment outcomes may vary. This page does not constitute investment, financial, or professional advice and should not be relied upon as such. Investors should conduct their own due diligence and seek advice from qualified professionals before making any investment decisions.

Frequently asked questions

What is an Option to Purchase in Singapore?

An OTP is the document that gives a buyer the exclusive right to buy a property within a set window, usually after paying an option fee of around 1 percent. You exercise it later by paying the balance deposit. This checklist covers the 15 things to verify on the OTP before you commit.

How much is the option fee and exercise fee?

For resale, the option fee is typically 1 percent of the price and the exercise fee is typically a further 4 percent, making a 5 percent deposit in total. Non standard percentages can appear, so the checklist tells you to confirm the exact figures in both numerals and words before signing anything.

What is a subject to financing clause and why does it matter?

It makes the purchase conditional on your loan being approved, giving you an out if financing falls through. There is also a subject to valuation clause for when the bank values the property below your price. If your loan approval is not fully locked, the checklist flags both clauses as critical to consider.

What happens if I do not exercise the OTP?

The standard consequence is that you forfeit the option fee you paid. The checklist tells you to verify the withdrawal terms so you know exactly what is forfeited and that no other deductions apply. Knowing the downside before you pay the option fee keeps the decision a deliberate one.

How long do I have to pay stamp duty after signing the OTP?

Buyer's Stamp Duty, and ABSD where it applies, must be paid to IRAS within 14 days of signing the OTP, or you risk a penalty. This deadline is the final item on the checklist because it is easy to overlook once the excitement of securing the unit takes over.